As it happened: Live updates: Nine to axe 200 jobs, ASX trades higher (2024)

• ASX200: +0.1% to 7,767.50
• AUD: -0.3% to 66.26 US cents
• Hang Seng: +0.1% to17,734.91
• Wall Street: Dow +0.1% S&P +0.1% Nasdaq +0.19%
• Europe: Stoxx 50 -0.27% FTSE -0.5% DAX +0.3% CAC -1%
• Gold: -0.5% to $US2326g/oz
• Brent crude: +1.41% to $US88.49 a barrel
• Iron ore: -0.08% to $US106.4 a tonne
• Bitcoin +0.22% to $US61,537

Snapshot current at around 4:45pm AEST.

It's the last markets blog of the financial year!

On Monday, David Chau has a ripper article wrapping up the year in markets, looking at which stocks performed best and which ones tanked - and most importantly how our superfunds performed.

Have great weekend : )

Hot off the digital press: friend of the blog Ian Verrander has just published an analysis on the job cuts at Nine Entertainment and other media outlets like rival Seven West.

"The recent lay-offs across the media landscape could make an already difficult situation for the RBA even harder as it comes under pressure to rein in persistent inflation with yet another hike."

A Western Australian gas company has shelved its plans to build a $3 billion fertiliser plant which would have provided three quarters of Australian food growers' urea needs and will instead focus on producing electricity.

Strike Energy has gas wells and exploration interests in the northern Perth Basin and brought its maiden natural gas project, Walyering, online in September 2023.

But it was its plans to make 1.4 million tonnes of urea per annum from clean hydrogen and natural gas that attracted the interest of farmers.

They are keen on a local supply of nitrogen which is essential for crop growth and development, but is currently entirely imported.

Farmers hoped Strike's Project Haber, proposed to be located west of Three Springs, would provide a local and more affordable source of urea for their crops.

Strike Energy is the ASX200's biggest mover today, up 10 per cent at 1430AEST.

Eastern states readers are entering the final stretch of the working week (hi from the west!).

If you're reaching for that cuppa to get you through to the end of the day, here are some cool stats about the global trade in coffeeand teacourtesy of S&P Global Market Intelligence.

In the 2023 calendar year, 8.88 million metric tonnes (mmt) of coffee was traded around the world, with Brazil, Vietnam and Columbia being the main exporters.

Unsurprisingly, the USA was the major importer, buying 18pc of the coffee traded, while all the European countries in the top 10 accounted for around 42 per cent of imports.

For tea, global trade volume came in at 1.89mmt, with China and Kenya being the major exporters.

The USA and Germany were the only countries in the top 10 for both coffee and tea imports.

By 2040, coffee and tea trade volumes are forecast to grow to 10.73 mmt and 2.14 mmt, respectively, at compound annual growth rates (CAGRs) of 1.1pc and 0.7pc, respectively, from 2023.

More fun facts about the trade in the world's favourite comfort beverages: one kg of roasted coffee beans yields 111 cups, while one kg of tea leaves can produce up to 400 cups.

In 2023, the world traded the equivalent of 986.0 billion cups of coffee and 757.9 billion cups of tea. By 2040, the numbers are expected to increase to 1.2 trillion coffee cups and 856.2 billion tea cups.

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Iron ore is a major export earner for Australia, and China is the number one buyer.

So the health of the Chinese real estate market is something many economists keep a keen eye on.

CommBank has published a very interesting note, looking at a fall in iron ore spot prices yesterday despite the fact the Chinese government has lowered the down-payment requirements for first and second time homebuyers.

Despite all Tier 1 (Beijing, Shanghai, Shenzhen and Guangzhou) cities looking to revive their local property sectors, it’s hard to have conviction that China’s property sector is on the path to a sustained recovery.

But CommBank is predicting additional policy moves from the Chinese government will boost the iron ore price over the medium term.

A weakening property sector increases the likelihood that China misses its economic growth target of "around 5%" this year.

This may trigger more policy announcements later this year that boost infrastructure investment (25-30% of China's steel demand) as policymakers re-prioritise economic growth.

We saw this last year when China raised the fiscal deficit ratio from 3.0% of GDP to 3.8%.

This potential policy shift towards infrastructure is a key upside risk to our view that iron ore prices will average $US100-110/t (62% Fe, CFR China) in H2 2024.

Nine Entertainment - owner of The Age, Sydney Morning Herald, The Australian Financial Review andNine Newshas announced it'll cut up to 200 jobs across the network due to 'economic headwinds'.

The SMH has reportedthat an email sent to staff this morning by Nine chief executive Mike Sneesby blamed a 'weaker advertising market' and a deal with Meta(the owner of Facebook and Instagram) coming to an end were the reason they had to cut jobs.

Up to 90 jobs are expected to be cut from the publishing division, and a further 38 from the news and current affairs broadcasting division.

“From our nationwide team of almost 5,000 people, around 200 jobs are expected to be affected across Nine including some vacant and casual roles not being filled,” Sneesby said in the email.

The Sydney Morning Heraldhasreportedup to 150 jobs are on the chopping block amid a restructure announced by Seven West on Tuesday that saw senior executives leave the company and a new CFO announced. However sources speaking toCrikeysayThe Nightlywill be left untouched.

Crikeyunderstands every state that Seven operates in has a target of redundancies to be met, with all departments (besidesThe Nightly) set to be affected.

I'm not :(

But friend of the blog David Taylorhas been digging into some recently released Australian Bureau of Statisticsdata that reveals household wealth has risen for the sixth straight quarter.

Property owners are seeing their wealth grow by what some economists describe as a "noteworthy" amount.

Australian Bureau of Statistics data show household wealth rose for a sixth straight quarter by 2.7 per cent ($431 billion), over the March quarter 2024.

Total household wealth was $16.2 trillion in the March quarter, which was 10.2 per cent ($1.5 trillion) higher than a year ago.

Once again, if you've paid off a mortgage, and own a home, you're likely to be in the cohort that's actuallyfeeling wealthier, and the stats show, are spending more.

Independent economist Saul Eslake says the wealth gain from property is a symptom of Australia's love affair with the housing market.

"Australia has become a property speculators' paradise, especially since the halving of the capital gains tax rate back in 1999."

Despite the subdued dance on Wall Street, the ASX 200 is doing nicely this morning with a gain of 0.6% to 7808 points.

ANZ is up 0.7% on the news that it set to takeover Suncorp Bank, which is lower than the broader gains of 1.2% for finance stocks.

Suncorp, meanwhile, is up 2.8%.

Meanwhile its rival IAG is roaring, with its stock up 7.8% on news of a reinsurance deal.

You might remember a story from more than four years ago about the charity World Vision Australia self-reporting widespread staff underpayment.

At the time, it said the issue stemmed from it paying lots of its staff under the wrong AWARD.

Well, now FairWork Australia says they've paid back more than 3,000 staff $6m in wages and other entitlements like super.

It is unclear if this repayment just happened or some time ago.

World Vision Australia couldn't be contacted for comment. As part of FairWork's release, it says the charity has signed an enforceable undertaking to review its payroll processes.

Its EU notes that World Vision Australia reported the final figure of $6m to FairWork in May.

E&P Capital analyst Azib Khan has put out a note on the news that the treasurer has approved ANZ's takeover of Suncorp's banking arm.

They aren't expecting the takeover to greatly impact the returns of shares on ANZ stock.

"Potentially very modest (~2%) EPS accretion," they note.

"We believe the acquisition will add to ANZ’s medium-term cost challenges, and that the acquisition will not significantly shift the dial in terms of ANZ's capital allocation which sees the greatest percentage of capital being allocated to the relatively-low-ROE Institutional division."

This story from ABC's Nassim Khadem just aired.

A union representing finance, insurance and other banking professionals is welcoming the treasurer's approval of ANZ takeover of Suncorp's banking arm.

The Finance Sector Union says the condition that no job losses or branches close for three years will give workers time to reskill.

“This will help reskill affected workers and maximise opportunities for redeployment or new technology jobs in the future," FSU's national president Wendy Streets says.

"The Treasurer has taken the time to genuinely consider the impact this major acquisition will have on workers with these positive conditions.

"And we’ll now be holding ANZ accountable to ensure they are upheld."

More on those conditions for the ANZ takeover of Suncorp's banking arm, as highlighted in a press release by the treasurer.

ANZ is also being told to lend $15b to Queensland's renewable energy projects and for its 2023 Olympic Games.

Plus $10b for other projects like hydrogen, $10b for small business in the state, and 3,000 homes worth of lending.

In a speech sent out to media, the federal treasurer Jim Chalmers confirms he is approving ANZ's takeover of Suncorp's banking business.

But there are "strict conditions".

"The Commonwealth's conditions prohibit regional branch closures for three years," the speech says.

"Require ANZ to make every effort to join Bank@Post, ensure no net employment losses across Australia for three years due to the transaction, and insist on proper engagement with employees and the Finance Sector Union."

We'll bring you more soon.

In its press release, ANZ notes that there are three major things that need to happen to pave the way for its takeover of Suncorp's banking arm.

That is: authorisation under Australia's competition laws by the ACCC, federal treasurer approval, and Queensland legislative amendments.

It notes the latter hasn't happened, but if it does, the acquisition is expected to take place at the end of July.